Trading Halted in About 15 Firms in Hong Kong On Results Delay
(Bloomberg) -- Trading in shares of some 15 Hong Kong-listed companies was suspended Friday as a number of firms were unable to publish annual results by a June-end deadline.
More than half the companies that issued trading halts -- most of which were small caps -- cited the need for additional time before reporting results for the year through March. About nine firms had suspended trading on the same day last year. The Hong Kong Exchange declined to comment in an emailed response to a Bloomberg News query on the halts.
Among the companies, Ares Asia Ltd., said it hadn’t yet completed assessment of impairments, thus delaying the release of its results. The firm aims to finalize its report by September and trading will remain suspended until further notice, it said in a filing to the exchange early Friday. Global Brands Group Holding Ltd. and Asia Cassava Resources Holdings Ltd. were among other companies reporting delays.
Earlier this year on April 1, more than 50 Hong Kong-listed companies halted trading after some didn’t meet a deadline to disclose earnings. By the end of April, some 40 firms still hadn’t delivered their overdue reports.
These included GCL-Poly Energy Holdings Ltd., with its shares still halted after it released unaudited results and appointed a new auditor. China Huarong Asset Management Co. shares also remain suspended, with the firm saying earlier this week that its auditors need more time to complete work on its financial reports.
Meanwhile, the Hang Seng Index slid as much as 1.8% as trading resumed after Thursday’s holiday. China’s CSI 300 Index slumped the most since mid-March as investors rushed to offload shares after the ruling Communist Party’s 100th anniversary celebrations.
“Today’s plunge is more related to broader concerns such as liquidity tightening and virus,” said Andy Wong, a fund manager at LW Asset Management. Most of the companies with trading halts are small-cap stocks that have little impact on index moves or overall market sentiment, he added.
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